VA Mortgage Loans

A VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces because there is no down payment needed and no private monthly mortgage insurance required.

A VA home loan can be used to purchase a home or refinance an existing mortgage.

We will discuss what role the VA plays in a VA guaranteed mortgage, the benefits of a VA home loan, who is eligible for a VA loan, and the VA documentation you will need to present to your lender.

Did you know that more than 27 million veterans and service personnel are eligible for VA financing, yet most aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement?

VA Does Not Offer Loans Directly and Does Not Guaranty You Will Qualify.

VA does not actually lend the money to you directly. They offer a guaranty to a lender that if you should default on the loan, they will pay the lender a percentage of the loan balance. The word GUARANTY does not actually guaranty the veteran will qualify for a VA home loan.

Primary Benefits of a VA Home Loan:

100% financing

No monthly private mortgage insurance is required

There is a limitation on buyers closing costs

The loan is assumable, subject to VA approval of the assumer’s credit

30 year fixed loan

Seller can pay up to 4% of the veterans closing costs and even pay down your debt to help lower your debt-to-income ratio

Interest rates are similar to FHA rates

You don’t need perfect credit

Who is Eligible for a VA Home Loan?

Veterans with active duty service, that was not dishonorable, during World War II and later periods, are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.

Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.

VA Documentation Needed:

The three specific pieces of documentation a lender will need to determine your eligibility is a DD214 for discharged veterans, a statement of service for active military personnel, and a certificate of eligibility (COE) to determine you have VA entitlement.

Because each lender has different qualifying guidelines, the next step is to contact your lender to find out if you meet their qualifying criteria such as minimum FICO/credit scores, debt-to-income (DTI) ratios, and find out what your county’s maximum loan amount is. Your lender can help you attain your certificate of eligibility on your behalf.

…..

Frequently Asked Questions:

Q: Are the children of a living or deceased veteran eligible for the home loan benefit?

No, the children of an eligible veteran are not eligible for the home loan benefit.

Q: How can I obtain proof of military service?

Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA.

Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.

Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?

The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit.

Eric Schneider, MLO-211029

As Absolute Mortgage’s VP of Business Development/EVP, Eric takes seriously his responsibility of hiring quality Mortgage Advisors that align themselves with the culture and qualities needed to make Absolute the company you want to work for in the Pacific Northwest. As quality MA’s join Absolute, branch expansion is required; Eric is focused on acquiring prime locations, convenient and spacious, to accommodate the positive growth of the Absolute family.

Eric joined Absolute Mortgage in 1997 as a Mortgage Advisor and Sales Manager when long-time friend and President of Absolute, Eric Bolstad, started the company. Eric has assisted in opening 17 branch locations throughout the Pacific Northwest with more upcoming.

Eric’s passion is to hire fresh, energized individuals and teams to join the Absolute Family. His years in the mortgage industry and ability to give attention and guidance to the professionals he meets makes him a frontrunner in his field. Absolute Mortgage is passionate about their people – in their career goals and in personal development. Eric is a leader among them.

Come experience the feeling of being part of an organization that cares about you and supports achieving your goals, both professionally and personally.